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Getting to Truth, and Solidarity, on Loft Law Reform


nyc loft tenants rally

Rally for the Loft Law bill (photo via @NYCLT)


Recently, there has been considerable attention paid to a Loft Law “clean-up” bill that is on the table in the New York State Legislature. Advocates have worked tirelessly for over three years to make it law; an effort stymied by a Republican-controlled Senate in 2017 and 2018, resulting in eviction of many loft tenants.

In November 2018, Democrats won enough seats to take control of the Senate this year and thus all of state government. Many Democrats won hard-fought elections, including Julia Salazar, running on a platform of strengthening rent laws to protect tenants. This blue wave raised hopes that, along with other legislative actions to strengthen New York’s rent laws, the Loft Law clean-up bill would finally pass.

Early this year, the bill was introduced, sponsored in the Assembly by Deborah Glick – a longtime champion for loft tenants – and in the Senate by Salazar. The bill offers a platform around which housing rights advocates should rally – it protects tenants across the city, creates additional affordable housing units, keeps working-class labor markets intact, and regulates rent in communities threatened by gentrification.

Yet, opposing forces have once more succeeded in stalling its enactment, by disseminating misinformation about its contents, impacts, and the Loft Law in general. This has poisoned solidarity of communities who share the same interests, struggling to fight real estate development.

We believe that the strife must end. As diverse groups fighting to protect and strengthen tenants’ rights, we are on the same side and must stand united in solidarity. Universally strengthened rent laws cannot be accomplished if loft tenants are left out in the cold.

With that in mind, it is critical to dispel the misinformation and misconceptions around the Loft Law and the clean-up bill. Three central claims have been advanced by critics.

The first is that it will negatively impact jobs in the North Brooklyn Industrial Business Zone (IBZ), threatening approximately 20,000 industrial and manufacturing jobs in the IBZ. This is false. In fact, the bill does exactly the opposite.

The bill and Loft Law in general contain structural limitations on which residential units can be protected. Tenants must show that their apartments were residentially occupied during two narrow windows of time in order to be protected (2008 – 2009 and 2015 – 2016). Only units that were and are already occupied residentially will qualify. Thus, future illegal “M-R” conversions (from manufacturing to residential) will not be protected under the Loft Law and are precluded by the IBZ’s zoning restrictions.

The current Loft Law provides that the entire IBZ is subject to potential claims for coverage. This has been the state of the law since 2010. There is no evidence, nor has any been presented, that during those nine years there was any job loss in the IBZ caused by the Loft Law or loft tenants. The Loft Law has been amended multiple times since 2010 without any objection regarding the IBZ. Additionally, and missed in this argument, is that the Loft Law does not displace existing manufacturing or commercial use – it protects units and buildings that are and have long been residential. The argument is thus the very definition of a red herring.

Nevertheless, to address recently-expressed concerns about the potential impact on the IBZ, the bill removes approximately 90 percent of the IBZ from Loft Law coverage by excluding areas that are zoned for heavy manufacturing (M3) uses, thereby preserving the vast majority of the area for manufacturers and related jobs. Failure to pass it would therefore have precisely the opposite effect of what critics want: the entire IBZ would continue to be subject to the Loft Law.

The second criticism is that it will catalyze community displacement.

We, as a part of the housing rights community, share the concern over policymakers designing laws that intentionally or inadvertently advantage certain groups at the expense of others. However, an amended Loft Law will contribute to community preservation, not undermine it.

The Loft Law protects low-income people and families by preventing landlords from charging higher, market-rate rents for protected loft units. Preserving these units as additional affordable housing units increases market supply, causing downward, not inflationary, pressures on rents.

The third criticism is that it will invite residential use in heavy manufacturing buildings, opening the door to unsafe living conditions. As stated above, the bill does not do this – by excluding M3 zones, the bill prevents this outcome. Not passing the bill perpetuates the very problem identified in this critique.

The Loft Law has always considered uses such as those in the light or medium manufacturing (M1/2) districts in the IBZ, when conducted as part of a live-work space, to be permissible; and historically there have been many buildings and units containing such mixed uses. But, again, the argument is a red herring, for landlords who illegally rent out spaces for residential use will continue to do so if the clean-up bill does not pass; meaning that any “hazard” posed for tenants will continue to exist, unabated.

One fundamental purpose of the Loft Law is to ensure legalization of covered buildings and units already converted into residential use. Part of that process includes measures to ensure that buildings meet the city’s safety and health codes. The bill will therefore increase the safety and well-being of residential tenants.

It is dismaying that long-standing allies in the fight for strengthening tenant rights have assumed opposing positions. We believe that has been the result of misunderstandings of the issues addressed here. But the time for disagreements is over. We, as a community of people who share common interests and goals, cannot afford any further division to be sown. People have been, and are on the precipice of, losing their homes, and without passage of the clean-up bill, many more will join them. This is unacceptable, unjust, and inconsistent with the larger movement to strengthen New York’s rent laws, protect tenants, and slow gentrification and displacement. Accordingly, we call on the community to support the passage of the Loft Law clean-up bill.

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Alison Dell, Ximena Garnica, McDavid Moore & Zefrey Throwell are New York City Loft Tenants (NYCLT) members and live-work spaces advocates. Michael Kozek is an NYCLT member and Loft Law lawyer. Michael McKee is treasure of Tenants PAC. On Twitter @NYCLT.

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